Feeds

Chip sales up but prices down

Silicon swings and roundabouts

Top three mobile application threats

Price cuts are continuing to hurt profits for chip makers, even though actual sales are increasing.

In the first half of 2007, worldwide chip sales hit $121bn, up two per cent on the first six months of 2006.

Semiconductor Industry Association president George Scalise said: "Continuing rapid price attrition in several important market segments held growth in total semiconductor sales to just over two per cent in the first half of 2007 despite increases in total unit shipments of almost seven per cent."

The association reckons PC sales will grow 10 per cent in 2007.

The average price for a desktop PC has dropped to around $700, and they have 50 per cent more memory than a year ago.

Sales of mobile phones are also up 10 per cent, but sales of Digital Signal Processing (DSP) chips grew only three per cent - suggesting excess inventory.

But all this growth in sales numbers was undermined by falling prices. DRAM prices fell 40 per cent while unit sales jumped 66 per cent on last year. Shipments of NAND chips were up almost 40 per cent, but average selling prices fell 15 per cent.

SIA figures are available here.

In other chip news, Samsung said on Friday that it was forced to shut down six chip lines due to a power failure at its fab near Seoul. Analysts suggested that the loss of any chips on the lines at the time, plus a two week cleanup before production restarted, could leave Samsung with almost a month's worth of lost inventory. But the plant was back up and running on Saturday leading Samsung to say losses would be lower than predicted. A power substation at the factory was blamed for the blackout.

More form the Chosun Ilbo here. ®

Combat fraud and increase customer satisfaction

More from The Register

next story
Feast your PUNY eyes on highest resolution phone display EVER
Too much pixel dust for your strained eyeballs to handle
Samsung Galaxy S5 fingerprint scanner hacked in just 4 DAYS
Sammy's newbie cooked slower than iPhone, also costs more to build
Microsoft lobs pre-release Windows Phone 8.1 at devs who dare
App makers can load it before anyone else, but if they do they're stuck with it
Report: Apple seeking to raise iPhone 6 price by a HUNDRED BUCKS
'Well, that 5c experiment didn't go so well – let's try the other direction'
Rounded corners? Pah! Amazon's '3D phone has eye-tracking tech'
Now THAT'S what we call a proper new feature
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
US mobile firms cave on kill switch, agree to install anti-theft code
Slow and kludgy rollout will protect corporate profits
AMD unveils Godzilla's graphics card – 'the world's fastest, period'
The Radeon R9 295X2: Water-cooled, 5,632 stream processors, 11.5TFLOPS
Sony battery recall as VAIO goes out with a bang, not a whimper
The perils of having Panasonic as a partner
NORKS' own smartmobe pegged as Chinese landfill Android
Fake kit in the hermit kingdom? That's just Kim Jong-un-believable!
prev story

Whitepapers

Designing a defence for mobile apps
In this whitepaper learn the various considerations for defending mobile applications; from the mobile application architecture itself to the myriad testing technologies needed to properly assess mobile applications risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.